Home Bargains is in a “strengthened” financial position despite its profits being cut by more than £100m during its latest financial year.

The Liverpool-headquartered discount retailer has posted pre-tax profits of £293.1m for the 12 months to June 30, 2022, down from £396.7m in the prior year.

However its turnover, according to newly-filed documents with Companies House, rose from £3.33bn to £3.41bn.

A statement signed off by the board said the growth in turnover was due to opening new stores, relocating shops and an increased contribution from existing sites.

It added: “The balance sheet shows that the company’s financial position has strengthened compared to the prior year in terms of net assets.”

As of June 30, 2022, Home Bargains had 572 shops while its employees increased from 27,553 to 28,401. The company has previously stated its plans to grow to 1,000 stores, employing over 40,000 staff.

During the year the business paid out dividends of £30.5m. TJ Morris, which trades as Home Bargains, was founded over 40 years ago by Tom Morris and the company is still run by the family.

In the prior financial year, a total of £25m was handed out to shareholders in dividends. The latest dividend payout is the highest since £40m was given in the year to June 2016.

According to the 2022 Sunday Time Rich List, Tom Morris had a net worth of £5.127bn and was ranked fourth in the North West.

In January this year, it was revealed that Mr Morris paid £112.2 million in tax in 2022.The accounts come after Home Bargains bought fellow discount retailer Quality Save in January this year.

Quality Save was founded in 1974 by Bob Rudkin on a market stall in Walkden and a small store in Farnworth.

According to its most recently available set of accounts, the company posted a loss of more than £64,000 for the 12 months to the end of March 31, 2021, compared to a profit of £1.3m in the prior year.

However its turnover increased from £66.7m to more than £70m over the same period. In November 2022, it was reported that the brother of the billionaire founder of Home Bargains had quit the company after more than two decades.